There’s a great chance that someone out there is currently building a solution that is mostly related to the use of technology. Innovation is a key driver of many sectors and the reason why billions of dollars are spent every year on Research and Development to create products and services that transform our lives and businesses. However, what happens when these innovations fall short and maybe fail?

Innovation happens when Invention meets adoption, which implies that a “novel” idea has to be invented, and customers need to adopt it before it can be regarded as a “successful” innovation. For an invention to be praiseworthy, it would come from an idea that is usable, adopting a feasible solution, and its economics must be viable, meaning the benefit must exceed its cost.

The market fit of the innovation depends on its adoption. Who are the customers, and how do they respond to the product? If you innovate, but your product does not attract your customers, or the benefit they get from the product is less than the cost they pay for it, then the innovation may not survive.

Today, with the wave of technology and everyone looking to key into this rapid buzz with various inventions catering to different sectorial issues, every leader understands that you either innovate or fade out to irrelevance. According to this report by Seedgroup, companies like Netflix, Paypal, IkEA, Starbucks, etc., have transitioned from the analog to the digital world and have embraced technological innovations and their by-products in a praiseworthy manner because these models have survived. However, this does not negate that other promising innovations may have to fall apart.

The big game in innovation is that 2+2 may not equal 4 in the long run. There are, however, certain idiosyncrasies that come into play despite imperatives that make businesses fail. Let’s dive into understanding some of the reasons why innovation fails.

It was never an innovation.

Creating solutions for problems you know nothing about. Abstract solutions may be the order of the day, but it is also a fast route to failure. The CEO of Documentum, Jeff Miller, was quoted to have said: “I may be wrong, but I’m not confused.” Most innovators today are confused and wrong; “thoughts” and “guts feeling” are now being misrepresented as Innovation. For an innovator, the first thing to do is to look at whatever the thought is through the lenses of usable ideas, feasible solutions, and viable economics.

It’s a different story if your product is just one of many in the market. Invention alone is not enough. You need to get people and organizations to adopt your invention to make it an innovation. Steaming innovations are those that create products or services without knowing the needs of your target audience. They try to solve problems that no one has. To understand the market is to know what kind of key you need to open the lock. A quick formula that has influenced my idea of what a successful innovation may come across is the Invention+ adoption = Innovation.

A Misplaced Value Model.

To succeed, you need to create and capture value. Value is created when you offer something cheaper than what customers pay. Usually, you capture only part of the possible value, and the challenge is to increase both. What you capture matters for your business. If you create much but capture little, you and your business will fail.

Creating an innovative culture is essential for businesses to compete and interest customers. It requires time and effort, but it works. Ideas need to change with the culture and the times. With the fast growth of digital innovations, companies, and start-ups have adopted innovation strategies, technologies, and processes. Create a vision and goals as a start for change.

Market Size

The total addressable market (TAM) is the maximum revenue you could make if everyone bought your product or service. The serviceable addressable market (SAM) is the revenue you could make from the customers you can realistically reach.

The TAM and SAM help you to plan your business strategy by showing you:

• Your target customers.
• Your potential market size.
• Your market share and profit potential.
• Your market segments and how to reach them.

Indigestion rather than starvation is stifling your product.

Ideas are easy, implementation is hard, and innovations are the hardest. Start-ups fail more from doing too much than too little. They have many ideas, opinions, and thoughts that clutter their creation. Start-ups may fail from overambition rather than lack of resources. Emily Liggett said many start-ups die of indigestion rather than starvation. They have too many tempting opportunities and ideas that seem innovative. They try everything at once and keep failing.

You need to know when to stick or switch. The problem may not be the innovation, but the market strategy. You may get frustrated when the adoption rate is low and try something else or chase another opportunity that looks promising. Doing many things at the same time is a sure way to kill your innovation.

No focus on marketing. Where is your customer?

When did you get customer feedback in your innovation process? Users may not know what they want, but they know what they don’t want. Your idea may seem great to you, but not to the market. You need to plan and design with customers in mind. You should start by validating your idea with them, even before you write anything down. You should also build prototypes, cheap MVPs, and alternatives, and let the users test them.

There are many reasons why innovations fail. By understanding these pitfalls, businesses can increase their chances of success. Innovation is not just about creating new things. It is also about solving problems and meeting your customers' needs and creating a culture of innovation is essential for businesses that want to stay ahead of the competition.

Written by Yusuf Oguntola, Chief Technology Officer, AFEX.